Readers Question: Discuss the case for and against relying on the market mechanism to produce clean alternatives sources of energy that can replace fossil fuels such as oil and coal. (15) Fossil fuels are non-renewable resources. Therefore, as they run out, the price will rise. This will create an incentive for firms to look for …
In 2009, Alistair Darling introduced a 50% tax rate on bank bonuses of more than £25,000. The bonuses would be paid by the banks rather than employees. I spent a lot of last year, saying how much tax revenues had fallen. The credit crunch and recession caused many traditional sources of revenue to dry up. …
Most people who work have to pay HM Revenue & Customs (HMRC) National Insurance Contributions (NICs) as well as tax. Payment of NICs may entitle you to benefits, such as a state pension and jobseeker’s allowance. Some are paid at a flat rate with others, the amount payable is linked to earnings. N I C …
I woke up this morning to the site of 8 inches of snow. My first thoughts were great! – no school today. (teachers enjoy a day off as much as students). Quite a few county councils have been alarmed at how quickly their stocks of salt for gritting the roads has dwindled. There appears …
Once you have researched a market and decided to set up a business, how do you provide the necessary finance to set up a business. 1. Personal Savings – If start up costs are very low, you may be able to set up business from own savings, e.g. small internet business. But, unless you have …
Definition of Income Gearing – this is the percentage of Post tax profits that are spent on obligatory debt interest payments Household Income Gearing – The Bank of England measure obligatory payments by households on paying interest and other regular repayments on debt. This is calculated as a proportion of post-tax income. What Factors influence …
2010 will be a difficult year for the UK economy. After the deepest recession since the 1930s, the outlook is for a sluggish recovery. Though recovery is welcome, it still leaves the problem of spare capacity, high unemployment and record levels of peacetime government borrowing. It will be a difficult tightrope between boosting economic growth …
Readers Question: Indicate the problems which are created for the government’s finances as a result of having to help avoid an even deeper recession. In a recession, automatic fiscal stabilisers automatically cause a rise in borrowing. The UK recession hit tax revenues hard. Income tax receipts fell as top earners were made unemployed. Corporation tax …